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A company is considering a 5-year project. It plans to invest $60,000 now and it forecasts net cash flows for each year of $16,000. The
A company is considering a 5-year project. It plans to invest $60,000 now and it forecasts net cash flows for each year of $16,000. The company requires a hurdle rate of 12%. Selected factors for the present value of an annuity of $1 for 5 years are shown below: Interest Rate Present Value of an Annuity of $1 for 5 Years 10%........ ..3.7908 12%.......... 3.6048 14%......... 3.3522 The internal rate of return (IRR) is: Select one or more: a. Lower than 10% b. Slightly higher than 10%. C. Slightly lower than 12%. d. Slightly higher than 12% e. Higher than 14%
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